<!DOCTYPE html><html><head>
      <title>README</title>
      <meta charset="utf-8">
      <meta name="viewport" content="width=device-width, initial-scale=1.0">
      
      <link rel="stylesheet" href="file:////Users/gaurab/.vscode/extensions/shd101wyy.markdown-preview-enhanced-0.8.18/crossnote/dependencies/katex/katex.min.css">
      
      
      
      
      
      <style>
      code[class*=language-],pre[class*=language-]{color:#333;background:0 0;font-family:Consolas,"Liberation Mono",Menlo,Courier,monospace;text-align:left;white-space:pre;word-spacing:normal;word-break:normal;word-wrap:normal;line-height:1.4;-moz-tab-size:8;-o-tab-size:8;tab-size:8;-webkit-hyphens:none;-moz-hyphens:none;-ms-hyphens:none;hyphens:none}pre[class*=language-]{padding:.8em;overflow:auto;border-radius:3px;background:#f5f5f5}:not(pre)>code[class*=language-]{padding:.1em;border-radius:.3em;white-space:normal;background:#f5f5f5}.token.blockquote,.token.comment{color:#969896}.token.cdata{color:#183691}.token.doctype,.token.macro.property,.token.punctuation,.token.variable{color:#333}.token.builtin,.token.important,.token.keyword,.token.operator,.token.rule{color:#a71d5d}.token.attr-value,.token.regex,.token.string,.token.url{color:#183691}.token.atrule,.token.boolean,.token.code,.token.command,.token.constant,.token.entity,.token.number,.token.property,.token.symbol{color:#0086b3}.token.prolog,.token.selector,.token.tag{color:#63a35c}.token.attr-name,.token.class,.token.class-name,.token.function,.token.id,.token.namespace,.token.pseudo-class,.token.pseudo-element,.token.url-reference .token.variable{color:#795da3}.token.entity{cursor:help}.token.title,.token.title .token.punctuation{font-weight:700;color:#1d3e81}.token.list{color:#ed6a43}.token.inserted{background-color:#eaffea;color:#55a532}.token.deleted{background-color:#ffecec;color:#bd2c00}.token.bold{font-weight:700}.token.italic{font-style:italic}.language-json .token.property{color:#183691}.language-markup .token.tag .token.punctuation{color:#333}.language-css .token.function,code.language-css{color:#0086b3}.language-yaml .token.atrule{color:#63a35c}code.language-yaml{color:#183691}.language-ruby .token.function{color:#333}.language-markdown .token.url{color:#795da3}.language-makefile .token.symbol{color:#795da3}.language-makefile .token.variable{color:#183691}.language-makefile .token.builtin{color:#0086b3}.language-bash .token.keyword{color:#0086b3}pre[data-line]{position:relative;padding:1em 0 1em 3em}pre[data-line] .line-highlight-wrapper{position:absolute;top:0;left:0;background-color:transparent;display:block;width:100%}pre[data-line] .line-highlight{position:absolute;left:0;right:0;padding:inherit 0;margin-top:1em;background:hsla(24,20%,50%,.08);background:linear-gradient(to right,hsla(24,20%,50%,.1) 70%,hsla(24,20%,50%,0));pointer-events:none;line-height:inherit;white-space:pre}pre[data-line] .line-highlight:before,pre[data-line] .line-highlight[data-end]:after{content:attr(data-start);position:absolute;top:.4em;left:.6em;min-width:1em;padding:0 .5em;background-color:hsla(24,20%,50%,.4);color:#f4f1ef;font:bold 65%/1.5 sans-serif;text-align:center;vertical-align:.3em;border-radius:999px;text-shadow:none;box-shadow:0 1px #fff}pre[data-line] .line-highlight[data-end]:after{content:attr(data-end);top:auto;bottom:.4em}html body{font-family:'Helvetica Neue',Helvetica,'Segoe UI',Arial,freesans,sans-serif;font-size:16px;line-height:1.6;color:#333;background-color:#fff;overflow:initial;box-sizing:border-box;word-wrap:break-word}html body>:first-child{margin-top:0}html body h1,html body h2,html body h3,html body h4,html body h5,html body h6{line-height:1.2;margin-top:1em;margin-bottom:16px;color:#000}html body h1{font-size:2.25em;font-weight:300;padding-bottom:.3em}html body h2{font-size:1.75em;font-weight:400;padding-bottom:.3em}html body h3{font-size:1.5em;font-weight:500}html body h4{font-size:1.25em;font-weight:600}html body h5{font-size:1.1em;font-weight:600}html body h6{font-size:1em;font-weight:600}html body h1,html body h2,html body h3,html body h4,html body h5{font-weight:600}html body h5{font-size:1em}html body h6{color:#5c5c5c}html body strong{color:#000}html body del{color:#5c5c5c}html body a:not([href]){color:inherit;text-decoration:none}html body a{color:#08c;text-decoration:none}html body a:hover{color:#00a3f5;text-decoration:none}html body img{max-width:100%}html body>p{margin-top:0;margin-bottom:16px;word-wrap:break-word}html body>ol,html body>ul{margin-bottom:16px}html body ol,html body ul{padding-left:2em}html body ol.no-list,html body ul.no-list{padding:0;list-style-type:none}html body ol ol,html body ol ul,html body ul ol,html body ul ul{margin-top:0;margin-bottom:0}html body li{margin-bottom:0}html body li.task-list-item{list-style:none}html body li>p{margin-top:0;margin-bottom:0}html body .task-list-item-checkbox{margin:0 .2em .25em -1.8em;vertical-align:middle}html body .task-list-item-checkbox:hover{cursor:pointer}html body blockquote{margin:16px 0;font-size:inherit;padding:0 15px;color:#5c5c5c;background-color:#f0f0f0;border-left:4px solid #d6d6d6}html body blockquote>:first-child{margin-top:0}html body blockquote>:last-child{margin-bottom:0}html body hr{height:4px;margin:32px 0;background-color:#d6d6d6;border:0 none}html body table{margin:10px 0 15px 0;border-collapse:collapse;border-spacing:0;display:block;width:100%;overflow:auto;word-break:normal;word-break:keep-all}html body table th{font-weight:700;color:#000}html body table td,html body table th{border:1px solid #d6d6d6;padding:6px 13px}html body dl{padding:0}html body dl dt{padding:0;margin-top:16px;font-size:1em;font-style:italic;font-weight:700}html body dl dd{padding:0 16px;margin-bottom:16px}html body code{font-family:Menlo,Monaco,Consolas,'Courier New',monospace;font-size:.85em;color:#000;background-color:#f0f0f0;border-radius:3px;padding:.2em 0}html body code::after,html body code::before{letter-spacing:-.2em;content:'\00a0'}html body pre>code{padding:0;margin:0;word-break:normal;white-space:pre;background:0 0;border:0}html body .highlight{margin-bottom:16px}html body .highlight pre,html body pre{padding:1em;overflow:auto;line-height:1.45;border:#d6d6d6;border-radius:3px}html body .highlight pre{margin-bottom:0;word-break:normal}html body pre code,html body pre tt{display:inline;max-width:initial;padding:0;margin:0;overflow:initial;line-height:inherit;word-wrap:normal;background-color:transparent;border:0}html body pre code:after,html body pre code:before,html body pre tt:after,html body pre tt:before{content:normal}html body blockquote,html body dl,html body ol,html body p,html body pre,html body ul{margin-top:0;margin-bottom:16px}html body kbd{color:#000;border:1px solid #d6d6d6;border-bottom:2px solid #c7c7c7;padding:2px 4px;background-color:#f0f0f0;border-radius:3px}@media print{html body{background-color:#fff}html body h1,html body h2,html body h3,html body h4,html body h5,html body h6{color:#000;page-break-after:avoid}html body blockquote{color:#5c5c5c}html body pre{page-break-inside:avoid}html body table{display:table}html body img{display:block;max-width:100%;max-height:100%}html body code,html body pre{word-wrap:break-word;white-space:pre}}.markdown-preview{width:100%;height:100%;box-sizing:border-box}.markdown-preview ul{list-style:disc}.markdown-preview ul ul{list-style:circle}.markdown-preview ul ul ul{list-style:square}.markdown-preview ol{list-style:decimal}.markdown-preview ol ol,.markdown-preview ul ol{list-style-type:lower-roman}.markdown-preview ol ol ol,.markdown-preview ol ul ol,.markdown-preview ul ol ol,.markdown-preview ul ul ol{list-style-type:lower-alpha}.markdown-preview .newpage,.markdown-preview .pagebreak{page-break-before:always}.markdown-preview pre.line-numbers{position:relative;padding-left:3.8em;counter-reset:linenumber}.markdown-preview pre.line-numbers>code{position:relative}.markdown-preview pre.line-numbers .line-numbers-rows{position:absolute;pointer-events:none;top:1em;font-size:100%;left:0;width:3em;letter-spacing:-1px;border-right:1px solid #999;-webkit-user-select:none;-moz-user-select:none;-ms-user-select:none;user-select:none}.markdown-preview pre.line-numbers .line-numbers-rows>span{pointer-events:none;display:block;counter-increment:linenumber}.markdown-preview pre.line-numbers .line-numbers-rows>span:before{content:counter(linenumber);color:#999;display:block;padding-right:.8em;text-align:right}.markdown-preview .mathjax-exps .MathJax_Display{text-align:center!important}.markdown-preview:not([data-for=preview]) .code-chunk .code-chunk-btn-group{display:none}.markdown-preview:not([data-for=preview]) .code-chunk .status{display:none}.markdown-preview:not([data-for=preview]) .code-chunk .output-div{margin-bottom:16px}.markdown-preview .md-toc{padding:0}.markdown-preview .md-toc .md-toc-link-wrapper .md-toc-link{display:inline;padding:.25rem 0}.markdown-preview .md-toc .md-toc-link-wrapper .md-toc-link div,.markdown-preview .md-toc .md-toc-link-wrapper .md-toc-link p{display:inline}.markdown-preview .md-toc .md-toc-link-wrapper.highlighted .md-toc-link{font-weight:800}.scrollbar-style::-webkit-scrollbar{width:8px}.scrollbar-style::-webkit-scrollbar-track{border-radius:10px;background-color:transparent}.scrollbar-style::-webkit-scrollbar-thumb{border-radius:5px;background-color:rgba(150,150,150,.66);border:4px solid rgba(150,150,150,.66);background-clip:content-box}html body[for=html-export]:not([data-presentation-mode]){position:relative;width:100%;height:100%;top:0;left:0;margin:0;padding:0;overflow:auto}html body[for=html-export]:not([data-presentation-mode]) .markdown-preview{position:relative;top:0;min-height:100vh}@media screen and (min-width:914px){html body[for=html-export]:not([data-presentation-mode]) .markdown-preview{padding:2em calc(50% - 457px + 2em)}}@media screen and (max-width:914px){html body[for=html-export]:not([data-presentation-mode]) .markdown-preview{padding:2em}}@media screen and (max-width:450px){html body[for=html-export]:not([data-presentation-mode]) .markdown-preview{font-size:14px!important;padding:1em}}@media print{html body[for=html-export]:not([data-presentation-mode]) #sidebar-toc-btn{display:none}}html body[for=html-export]:not([data-presentation-mode]) #sidebar-toc-btn{position:fixed;bottom:8px;left:8px;font-size:28px;cursor:pointer;color:inherit;z-index:99;width:32px;text-align:center;opacity:.4}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] #sidebar-toc-btn{opacity:1}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .md-sidebar-toc{position:fixed;top:0;left:0;width:300px;height:100%;padding:32px 0 48px 0;font-size:14px;box-shadow:0 0 4px rgba(150,150,150,.33);box-sizing:border-box;overflow:auto;background-color:inherit}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .md-sidebar-toc::-webkit-scrollbar{width:8px}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .md-sidebar-toc::-webkit-scrollbar-track{border-radius:10px;background-color:transparent}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .md-sidebar-toc::-webkit-scrollbar-thumb{border-radius:5px;background-color:rgba(150,150,150,.66);border:4px solid rgba(150,150,150,.66);background-clip:content-box}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .md-sidebar-toc a{text-decoration:none}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .md-sidebar-toc .md-toc{padding:0 16px}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .md-sidebar-toc .md-toc .md-toc-link-wrapper .md-toc-link{display:inline;padding:.25rem 0}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .md-sidebar-toc .md-toc .md-toc-link-wrapper .md-toc-link div,html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .md-sidebar-toc .md-toc .md-toc-link-wrapper .md-toc-link p{display:inline}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .md-sidebar-toc .md-toc .md-toc-link-wrapper.highlighted .md-toc-link{font-weight:800}html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .markdown-preview{left:300px;width:calc(100% - 300px);padding:2em calc(50% - 457px - 300px / 2);margin:0;box-sizing:border-box}@media screen and (max-width:1274px){html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .markdown-preview{padding:2em}}@media screen and (max-width:450px){html body[for=html-export]:not([data-presentation-mode])[html-show-sidebar-toc] .markdown-preview{width:100%}}html body[for=html-export]:not([data-presentation-mode]):not([html-show-sidebar-toc]) .markdown-preview{left:50%;transform:translateX(-50%)}html body[for=html-export]:not([data-presentation-mode]):not([html-show-sidebar-toc]) .md-sidebar-toc{display:none}
/* Please visit the URL below for more information: */
/*   https://shd101wyy.github.io/markdown-preview-enhanced/#/customize-css */

      </style>
      <!-- The content below will be included at the end of the <head> element. --><script type="text/javascript">
  document.addEventListener("DOMContentLoaded", function () {
    // your code here
  });
</script></head><body for="html-export">
    
    
      <div class="crossnote markdown-preview  ">
      <div>
<h1 id="readme">README </h1>
<h2 id="overview">Overview </h2>
<p>The code in this replication package is the same code used for the analysis in Aryal and Zincenko (2024), "Empirical framework for Cournot oligopoly with private information," RAND Journal of Economics, vol. 55, No. 3, pp. 375-402. The data are organized and estimated using MATLAB, and figures and tables are generated using LaTeX. This package can generate most of the figures and tables (including the main results) in the manuscript. The missing figures and tables are generated in either LaTeX or MATLAB. We provide MATLAB codes that generate the necessary data, which can then be exported to create the figures and tables appropriately.</p>
<h2 id="data-availability-and-provenance-statements">Data Availability and Provenance Statements </h2>
<ul>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> This paper does not involve analysis of external data (i.e., no data are used or the only data are generated by the authors via simulation in their code).</li>
</ul>
<h3 id="statement-about-rights">Statement about Rights </h3>
<ul>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox" checked=""> We certify that the author(s) of the manuscript have legitimate access to and permission to use the data used in this manuscript.</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> We certify that the author(s) of the manuscript have documented permission to redistribute/publish the data contained within this replication package. Appropriate permissions are documented in the <a href="LICENSE.txt">LICENSE.txt</a> file.</li>
</ul>
<h3 id="summary-of-availability">Summary of Availability </h3>
<ul>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox" checked=""> All data <strong>are</strong> publicly available.</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> Some data <strong>cannot be made</strong> publicly available.</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> <strong>No data can be made</strong> publicly available.</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> Confidential data used in this paper and not provided as part of the public replication package will be preserved for ___ years after publication, in accordance with journal policies.</li>
</ul>
<h3 id="details-on-each-data-source">Details on each Data Source </h3>
<p>No source files and "raw" data are made available with the replication package. However, below is a list of the four secondary data sources, along with an example source file used in the programs.</p>
<table>
<thead>
<tr>
<th><a href="http://Data.Name">Data.Name</a></th>
<th>Data.Files</th>
<th>Location</th>
<th>Provided</th>
</tr>
</thead>
<tbody>
<tr>
<td>"Crude Oil"</td>
<td>CrudeOil.xls</td>
<td>/data/raw</td>
<td>TRUE</td>
</tr>
<tr>
<td>"Import Price"</td>
<td>Price_per_barrel.csv</td>
<td>/data/raw</td>
<td>TRUE</td>
</tr>
<tr>
<td>"Deflator"</td>
<td>Deflator.xls</td>
<td>/data/raw</td>
<td>TRUE</td>
</tr>
<tr>
<td>"Deflator Oil Drilling"</td>
<td>Deflator_PCU213111213111P.csv</td>
<td>/data/raw</td>
<td>TRUE</td>
</tr>
</tbody>
</table>
<p>where:</p>
<p><code>Crude Oil</code> is the main dataset, and it is available from the Monthly Energy Review published by the US Energy Information Administration. The Monthly Energy Review is available at <a href="https://rb.gy/rygmcz">BTS website</a>.</p>
<p><code>Import Price</code> provides oil prices (per barrel) published by the St. Louis Federal Reserve.</p>
<p><code>Deflator</code> and <code>Deflator Oil Drilling</code> give the deflators used in the paper.</p>
<h3 id="software-requirements">Software Requirements </h3>
<ul>
<li class="task-list-item">
<p><input type="checkbox" class="task-list-item-checkbox" checked=""> The replication package contains one or more programs to install all dependencies and set up the necessary directory structure.</p>
</li>
<li>
<p>MATLAB</p>
</li>
<li>
<p>MIDACO Unlimited Version (see notes below)</p>
</li>
</ul>
<h3 id="memory-runtime-storage-requirements">Memory, Runtime, Storage Requirements </h3>
<p>Data preparation was done in <code>MATLAB</code>. The codes should be run on a machine with at least 16 GB of RAM.</p>
<h4 id="summary">Summary </h4>
<p>Approximate time needed to reproduce the analyses on a standard (2023) desktop machine:</p>
<ul>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> &lt;10 minutes</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> 10-60 minutes</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> 1-2 hours</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox" checked=""> 2-8 hours</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> 8-24 hours</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> 1-3 days</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> 3-14 days</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> 14+ days</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox"> Not feasible to run on a desktop machine, as described below.</li>
</ul>
<h3 id="license-for-code">License for Code </h3>
<p>The code is licensed under a MIT license. See <a href="LICENSE.txt">LICENSE.txt</a> for details.</p>
<h2 id="instructions-to-replicators">Instructions to Replicators </h2>
<p>There's no need to change the directory for any file. Detailed instructions are in <code>code/main.m</code>. The code in that file runs in the following sequence:</p>
<h3 id="1-clean-the-data">1. Clean the data </h3>
<ul>
<li>Run <code>code/1_analysis/f1_cleaning.m</code> to create <code>OilData.mat</code>.</li>
</ul>
<h3 id="2-data-presentation">2. Data presentation </h3>
<ul>
<li>Run <code>code/1_analysis/f2_data_analysis.m</code> to create tables and figures used in the data section.</li>
</ul>
<h3 id="3-estimation-results">3. Estimation Results </h3>
<ul>
<li>Run <code>code/2_estimation/f3_estimating_parameters.m</code> to estimate the parameters presented in Table 3.</li>
<li>This code requires MIDACO Unlimited version. See more here: <a href="https://www.midaco-solver.com/index.php/about">BTS website</a>.</li>
<li>However, you can replace it with your choice of optimization solver (e.g., fminsearch/fmincon).</li>
<li>Go to <code>code/2_estimation/estimate_fun_midaco.m</code> and use your unlimited key for the code to run. The free version only allows up to 4 variables. Put all relevant MIDACO files into <code>/2_estimation/f4_estimating_parameters/midaco</code></li>
<li>To use the PPI for oil and gas drilling as deflator, change deflator = 2 in <code>f3_estimating_parameters.m</code></li>
</ul>
<h3 id="4-confidence-intervals">4. Confidence Intervals </h3>
<ul>
<li>Run bootstrap to get the confidence intervals from <code>code/3_inference/BS_CI.m</code></li>
<li>Run <code>code/4_counterfactual/after_estimation.m</code> to get the CI</li>
</ul>
<h3 id="5-counterfactual">5. Counterfactual </h3>
<ul>
<li>Run <code>code/4_counterfactual/counterfactual.m</code> to get the counterfactual prices, quantities, and DWL</li>
</ul>
<p>Note: The codes for the Monte Carlo exercise are not included. The codes provided here are for the estimation exercise only.</p>
<hr>
<h2 id="list-of-tablefigures-and-associated-programs">List of Table/Figures and associated programs </h2>
<p>The provided code reproduces:</p>
<table>
<thead>
<tr>
<th>Figure/Table #</th>
<th>Program</th>
<th>Note</th>
</tr>
</thead>
<tbody>
<tr>
<td>Figures 1,2, 4</td>
<td><code>code/1_analysis/f2_data_analysis.m</code></td>
<td></td>
</tr>
<tr>
<td>Figures 5</td>
<td>code/4_counterfactual/after_estimation.m</td>
<td></td>
</tr>
<tr>
<td>Tables 1</td>
<td><code>code/1_analysis/f2_data_analysis.m</code></td>
<td></td>
</tr>
</tbody>
</table>
<p>Note. Figure 3 is omitted because it is based on preliminary k-means estimates, which are subsequently used to construct Groups 1–6.</p>
<hr>
<h2 id="references">References </h2>
<p>Aryal, Gaurab, and Zincenko, Federico. 2024.  "Empirical framework for Cournot oligopoly with private information." RAND Journal of Economics, volume 55, Issue 3, pp 375-402.</p>
<hr>
</div>
      </div>
      
      
    
    
    
    
    
    
  
    </body></html>